Fit versus fat retail
He wakes daily at 5:05 am and trains from 6:00 am until 10:30 am rain, hail or shine. He doesn’t smoke, drinks very little alcohol and eats a diet of organic stuff. Sugar is a no no. The model of fitness you say and he is very happy. But surprisingly he is sick quite often. Usually flu like symptoms.
One of my close friends 20 years my son-in-law’s senior is grossly overweight, smokes a lot and drinks like a fish. Whenever he goes for a check up the doctors cannot find any problems. His heart is great, liver perfect and cholesterol couldn’t be better. He is happy and rarely is he sick.
Apply this to retail. Do you want to be a fit retailer or a fat retailer? There is no right or wrong answer but most successful retailers seem to fall into the fat category. They are not perfect. They take risks. They overbuy regularly. They slash prices when they are overbought. They take huge mark-ups whenever they can. When sales are sky high so are markdowns.
Show me a fit retailer and I’ll show you a lean mean machine with excellent metrics, perfect KPI’s and often mediocre results.
Show me a fat retailer and I’ll show you an exciting, risk taking merchant whose metrics are often out of line but who mostly makes profits second to none.
Generalisations galore, subjective and opinionated, yes. But hopefully this paints a picture.
Mr Parry was my menswear buyer. Every October we had a birthday promotion which wasn’t a sale but rather special offers, free gifts and so on. We used to buy in stock for the event. Mr Parry always had a sensational birthday promotion. He brought in tens of thousands of dollars of men’s suits. He never placed an order for these and when they arrived in receiving with no paper work, he would speak nicely to the receiving manager and promise to ‘fix it up later’. The supplier provided the goods on sale or return on a trust basis. They knew Mr Parry well and he used to sell a lot and return very little. Of course he eventually had to fess up and get an order signed which according to the fit rules, was an impossibility because there was never any open to buy available.
When he told his merchandise manager that the goods were already sold, there was little option but to have the order signed off. Mr Parry was a fat non-compliant highly successful retailer. I secretly wished I had a whole lot more like him but I could not admit this to a soul.
Most of the other buyers were fit. They obediently followed the rules and met their KPI’s. But it was Mr Parry who got the biggest annual increase.
Want more Inside Retail? Subscribe to Inside Retail Weekly now and get our premium print publication delivered to your door every week.
Inside Retail Polls
Inside Retail Directory
Disruptive realities in the retail industry are broadening market horizons for retailers. Discover new ways of doin… https://t.co/TPqCmfx1sf14 hours ago